Define Big Data And The Banking Industry Has Changed The World Of Financial Services

Define Big Data And The Banking Industry Has Changed The World Of Financial Services

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DEFINE BIG DATA & IOT IN BANKING
Banks hold some of the most personal information about its customers. Although it may seem like just another daily transaction on one’s bank statement, this is a very useful piece of data for banks. Traditionally, banks were used to store customer’s money and allow access at a customer’s demand. The banking industry has evolved tremendously in that it now offers any type of financial product a customer may need. A customer can establish a myriad of financial products such as a credit card, a mortgage, an auto loan, an insurance policy, and investment accounts all within one financial institution. A lot of information must be gathered by customers in order to establish the different types of products offered. This is where the concept of big data plays a big role in banking. Because banks’ capability to establish multiple accounts for multiple products for a customer, big data has made its way into the world of financial services. According to an article by bankingtech.com, “the value of Big Data to the retail banking industry is estimated at more than £6 billion ($8.5 billion) over the next five years.”
Another concept to consider is the Internet of Things in the banking industry. Mobile applications and online banking were some of the first developments were just some of the few. Banking is moving forward with this concept and new ideas have began to surface in the industry. For example, it has been documented by multiple sources that there is a smart refrigerator in the works that will allow customers to order their groceries via the refrigerator. Another more complex concept has been the idea of block chain. Block chain, in its simplest form, creates permanent time stamps of transactions by in...


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...iness and customer.
The second challenge is security best practices for non-relational data stores. As mentioned by the study, “companies dealing with big unstructured data sets may benefit by migrating from a traditional relational database to a NoSQL database in terms of accommodating huge volume of data.” The article goes on to mention that because these databases don 't have a focus on security, the company needs to review security policies and make sure they have a plan to mitigate and reduce security incidents.
The third challenge is to secure data storage and transaction logs. A concept called auto-tiering, automatically stores data in its specific tier and makes it easily available. The challenge is that many companies may not know where a piece of data is stored since it is all done automatically.
The fourth challenge is end-point input validation/filtering.

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